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Which function of a bank involves advancing money for productive purposes?

easy Q2 of 15
Banking Awareness - Basics Of Banking & Banking Terminology
Which function of a bank involves advancing money for productive purposes?
AAccepting deposits
BLending loans
CActing as custodian
DProviding remittance services
Step-by-Step Solution

  1. Step 1: Identify fund deployment

    Advancing money means giving funds to borrowers.

  2. Step 2: Match with banking function

    Banks advance funds through lending loans.

  3. Final Answer:

    Lending loans → Option B

  4. Quick Check:

    Loans channel deposits into productive use ✅
Quick Trick: Giving money out = lending.
Common Mistakes:
  • Confusing lending with agency services.
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